According to the firm's 10-KSB for the fiscal year ended March 31, 1998, on March 24, 1998 the United States District Court in Minneapolis dismissed the Complaint with Prejudice.

The original complaint alleged that Electroscope, the issuer of the common stock; John G. Kinnard & Co., the lead underwriter of Electroscope's initial public offering; and the members of Electroscope's board of directors violated the Securities Act of 1933 because Electroscope's Registration Statement and Prospectus included materially false and misleading statements, and omitted to state other facts necessary to make the statements therein not misleading, regarding, among other things, net revenue growth which was inflated by a one time sale to its distributor to stock inventory, and reduced net revenue which would be reported for the first fiscal quarter ended three business days after the initial public offering.